UAE Upgraded to MSCI Emerging Market Index | City Index

UAE Upgraded to MSCI Emerging Market Index | City Index:



"Dubai’s stock market has outperformed all of the world’s primary bourses so far this year as it has in 2013. Dubai Financial Market Index is up 44% year-to-date, beating Qatar’s 22% and Saudi Arabia’s 15%. This compares to -2%, -1% and +1% for the Dow Jones Industrials Index, the Dax and the FTSE-100 respectively. A major reason to Dubai’s stellar stock market performance has been Morgan Stanley Capital International’s upgrade of the UAE to its flagship emerging markets benchmark index, prompting EM fund managers around the globe to rush into UAE shares.



There is also chatter about UAE stocks finding more demand from global fund managers in the event that MSCI upgrades Korea or Taiwan (or both) from its EM classification to that of developed market. The announcement is due on June 10. 




The UAE is expected to grow at a healthy rate of 3.5%-3.8% in 2014 and 2015, benefiting from low interest rates, stable inflation, productive capital, increased investment and continued security from the volatility and unrest in the neighbouring nations."



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